Borrowing + Staking = FLAMA (The New DEFI)

Lending platforms offer the possibility to borrow a percentage of your holdings by depositing an amount of coins and they charge an interest for that.
There are some coins/tokens which offer staking, that means you get more coins by simply holding them.
We are building a protocol that will allow borrowers to pay negative interest on their loans.

How can we achieve that? Let’s see that with an example:

Current methods:

Alice deposits 100 coins in a platform to borrow 50 USD with a 5% interest rate.
After 1 year, Alice will have to deposit back the amount borrowed (50 USD) + 5% (2.5 USD) = 52.5 USD in order to claim back her 100 coins.
With current borrowing methods, Alice pays 0.525 USD (= 52.5/100) to claim each coin.

The new method for staking coins:

Alice has 100 coins that offer a 10% APY staking reward, so after one year Alice will have 110 coins.
With this new method, the protocol takes into account the staking yield, therefore reducing the price of borrowing. After 1 year, Alice will have to deposit 52.5 USD to claim 110 coins.

With our new method, Alice pays 0,47727 USD (= 52.5/110) to claim each coin.

Now Alice can borrow money without missing on the cost of opportunity of staking!